Q2 STOCKS TO BUY

Put Traders Flock Toward Underperforming Zillow Stock

Why Z has yet to reach its bottom

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Zillow Group, Inc. (NASDAQ:Z) is an online real-estate company based in Seattle, Washington. Z and its affiliates offer customers services for selling, buying, renting, or financing. Zillow affiliates and subsidiaries include Zillow, Zillow Premier Agent, Zillow Home Loans, Zillow Closing Services, Trulia, Out East, ShowingTime, Bridge Interactive, dotloop, StreetEasy, and HotPads. ZG is down 2.8% at $37.56 heading into today's trading.

In mid-April Zillow Group announced that their first quarter of 2022 financial results will be released after the market close on Thursday, May 5. The online real-estate company will host a conference call and webcast to discuss their results that same day. Though Z reported earnings of -$0.42 per share for the fourth quarter of 2021, Wall Street is expecting Zillow's EPS (earnings per share) to jump up significantly to $0.26 for this upcoming Q1 earnings report.

Zillow stock has decreased 71% year-over-year and Z is currently trading down 70% since trading at a 52-week high of $131.40 around this time last year. Additionally, shares of Z have dropped 37% year-to-date. Zillow is expected to see a shift to profitability and currently has forward price-earnings ratio of 36.76. 

Short interest on ZG has been climbing in recent weeks, up 10.2% during the most recent reporting period. This accounts for 6.5% of the stock's total available float, or just under four days' worth of pent-up buying power. 

Lastly, options traders have been extremely pessimistic toward the security. Specifically, at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Zillow stock's 10-day put/call volume ratio of 2.46 stands higher than 98% of readings from the last 12 months.

 
 
 

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